July 27, 2010 (Chinavestor) The overbought indicators captured the most overbought China stocks right at the open on Tuesday. NASDAQ listed China stocks rule the list, according to the chart below. Sina Corp. (NASDAQ:SINA), The 9 Ltd. (NASDAQ:NCTY), Zhongpin (NASDAQ:HOGS), Shanda Games (NASDAQ:GAME) NetEase.com Inc. (NASDAQ: NTES), Baidu.com (NASDAQ:BIDU) and Sohu.com (NASDAQ:SOHU) are the most impressive China stocks in the morning.
The online game sector got a second wind as investors embrace the sector. Shanda Games (NASDAQ:GAME), NetEase.com Inc. (NASDAQ:NTES) and The9 Ltd. (NASDAQ:NCTY) have been soaring on anticipation. Sohu.com (NASDAQ:SOHU) beat revenue and earnings estimates; its online game unit Changyou.com (NASDAQ:CYOU) contributing the most to the books.
Sina Corp. (NASDAQ:SINA) is another internet heavy hitter and is expected to bet expectations. Baidu.com (NASDAQ:BIDU), the largest Chinese search engine company commencing over 70 percent of the search market, reported robust earnings last week.
The overbought indicator picked up the uptrend of Zhongpin Inc. (NASDAQ:HOGS) - the stock is getting overbought, limiting upside potential.
Overbought A technical condition that occurs when prices are considered too high and susceptible to a decline. Overbought conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp advance from $15 to $30 in 2 weeks might lead a technician to believe that a security is overbought. Or, a security is sometimes considered overbought when the stock is trading out of its trading envelope and is approaching the theoretical high. It is important to keep in mind that overbought is not necessarily the same as being bearish. It merely infers that the stock has risen too far too fast and might be due for a pullback.